BUTTER EXPORTS.

Waikato Times, Volume 113, Issue 18874, 18 February 1933, Page 6

BUTTER EXPORTS.

SUGGESTED BRITISH QUOTA OPPPOSITION FROM DAIRY BOARD. COUNTER PROPOSAL. (By Telegraph.—Press Association.) WELLINGTON, Friday. The Dairy Produce Board at a special meeting to-day considered confidential cablegrams received from London embodying a suggestion that restrictions should be placed upon the quantities of New Zealand butter entering the British market. In a statement made subsequently, Mr W. A. lorns, c-hairman of the board, said: —"While the cabled suggestions are of a confidential nature, it oan be indicated that their effect, if adopted, would be to restrict Australian and New Zealand exports to a basis below that of the 1932 exports. Restrictions on a higher percentage basis were also 'being suggested in respect of foreign countries. These proposals arose -out of negotiations now proceeding in Britain for trade agreements between Denmark and the Argentine, among other countries, with Great Britain. “In view of the Importance of the Issue, the Dairy Board requested the attendance at its meeting of Mr W. Goodfellow, who had been the official representative of the New Zealand dairy industry at the Ottawa Conference. A full analysis of the situation, as it obtains both in relation to the present stock position and the future development of the country, was entered into, after which resolutions were passed which w’ere later conveyed to the Government. To these representations the Prime Minister, the Minister of Finance and the Minister of Agriculture gave careful consideration, with a view to communicating with the High Commissioner. The proposals for restriction made so far are tentative only and have not been made officially to the Government. The Only Sound Polloy. “Under the Ottawa agreement," continued Mr -lorns, “New Zealand was aocorded a free and unrestricted entry in respect of butter and cheese Into the British market for a term of three years (duties of 15s per owt. on butter and 15 per cent on oheese being accorded against non-Empire countries), while in return for this assured market New Zealand undertook (1) to remove the surtax obtaining on British imports into New Zealand; (2) not to Increase and as soon a-s possible to abolish the primage duty of 3 per cent; and (3) to revise tariffs agalns-t British goods as soo-n as possible' in order to accord the British manufacturer in general an equal opportunity for sale in New Zealand’s domestic market.

“After a discussion the Dairy Board unanimously reached the decision that as it was impossible to restrict the production of dairy produce within New Zealand the board could not agree to any restrictions being placed upon our annual exports of dairy produce to the United Kingdom. The board was further unanimously of opinion that the only sound policy for the future welfare of the Dominion was to aim at the attainment of free trade between the United Kindom and New Zealand prior to the expiry of the term of the Ottawa agreement. To that end the Government was urged at once to reduce duty on British goods to the extent of the Increase caused by the recent increase in the exchange rate. Restrictions Impossible.

“The Impossibility of imposing any restriction's upon production in New Zealand was emphasised. New Zealand is still very far from having attained its maximum development. The country has been developed in roads, railways and hydro-electric facilities by capital borrowed from Britain. The Obligations thus undertaken can only be met by an unrestricted opportunity for internal development. Restrictions upon porduction and output will Inevitably -react upon the Dominion’s capacity to meet its loan obligations and will thus affect the British investor.

“Restrictions upon the British market cannot be met by development of alternative outlets. As things are at present there are no alternative outlets of moment available to New Zealand for dairy produce. The United Kingdom offers New Zealand the only feasible outlet beyond its own market, which absorbed only 20 per cent of the total production with limited possibilities of increased absorption. The New Zealand farmer, owing to the stage of his development is probably as big a buyer of British manufactures as the British farmer and on these grounds is entitled to as much consideration as the British farmer in protection of his market. “The desire of British political and farming interests to protect their own agricultural producers from glutted markets Is recognised,” concluded Mr lorns, “but the special needs of New Zealand as distinct from the more fully developed Continental ‘countries and other parts of the Empire with different ilscal polices aiming at selfdependence have to be taken into consideration.”

OVER-PRODUCTION PROBLEM. NEW MARKETS ESSENTIAL. An intimation that he proposed to move at I lie National Dairy Conference opening in Hamilton on June 20, that it is desirable for New Zealand producers to find new markets for their produce was made by Mr A. J. Sinclair, secretary of the Te Awamutu Co-operative Dairy Company, conversing with a Waikato Times reporter to-day. Mr Sinclair criticised the statements of those who claimed that there was no such tiling as over-production of butter in New Zealand. He considered the only solution to the present over-production problem was tlie discovery of new markets. He added that he was now preparing data for Hie conference ami lie proposed to give an address on the prospects for trading in the Far East. Mr Sinclair declined to discuss the present situation of die butter market at Home and pointed out that the Hairy Produce Board was making recommendations to the Government on the matter.